The stock market was weak again on Friday session with the losses giving the major indexes their biggest weekly losses since October. Traders digested the ramifications of Johnson & Johnson’s (JNJ) coronavirus vaccine trial results, while an ongoing between Wall Street hedge funds and retail investors over Gamestop (GME) added to the spike in volatility. The Nasdaq closed at 13,070 (-2%) following the intraday drop to 12,985. Prior and upper support at 13,000-12,900 was breached but held. A move below the latter would indicate a retest towards 12,800-12,700 and the 50-day moving average.
The Dow ended at 29,982 (-2%) after tagging an intraday low of 29,856. Upper support at 30,000-29,750 was breached and failed to hold on the close back below the 50-day moving average. A close below the latter would signal further weakness towards 29,500-29,250.
The S&P 500 settled at 3,714 (-1.9%) with the second half fade reaching 3,694. Prior and upper support from the start of January at 3,700-3,675 was breached but held on the close back below the 50-day moving average, as well. A move below the latter would suggest additional weakness towards 3,650-3,625.
The Russell 2000 finished at 2,073 (-1.6%) after trading to a midday low of 2,066. Near-term and upper support at 2,080-2,060 failed to hold. A drop below the latter would signal a continued backtest towards 2,050-2,030. Below is a chart of the IWM.
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ADP (ADP) upgraded to Buy from Neutral at CitiBoeing (BA) upgraded to Overweight from Underweight at Morgan StanleySpire (SR) upgraded to Overweight from Neutral at JPMorgan
Harley-Davidson (HOG) downgraded to Neutral from Buy at NorthcoastLexicon (LXRX) downgraded to Neutral from Outperform at WedbushSouthwest Gas (SWX) downgraded to Neutral from Overweight at JPMorgan
MONDAY’S EARNINGS ANNOUNCEMENTS Before the open: Alliance Resource Partners (ARLP), ON Semiconductor (ON), Quotient (QTNT), Sterling Bancorp (SBT), Thermo Fisher Scientific (TMO)After the close: Cirrus Logic (CRUS), Fabrinet (FN), Harmonic (HLIT), Independent Bank Group (IBTX), Kemper (KMPR), NXP Semiconductors (NXPI), Omnicell (OMCL), PotlatchDeltic (PCH), Rambus (RMBS), Skyline (SKY), Vertex Pharmaceuticals (VRTX), Warner Music Group (WMG)
MONDAY’S ECONOMIC NEWSPMI Manufacturing Index – 9:45amISM Manufacturing Index – 10:00amConstruction Spending – 10:00am
METALS/ OILGold closed at $1,850.30 an ounce, up $9.10Silver settled at $26.91 an ounce, up $0.99Copper finished at $3.56 a pound, down $0.02Crude Oil was at $52.14 a barrel, up $0.05Bitcoin Investment Trust (GBTC) ended at $34.69 up $1.04
I hope this helps you prepare for the trading day. Make it a great one!
Todd Mitchell
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